Indian engineering firm Angelique International will build two hydro power plants in Cameroon as part of a 125 billion CFA francs ($251.5 million) aid deal.
State-owned Export-Import Bank of India will loan the money to Cameroon, the second such deal signed between the Gulf of Guinea nation and Angelique in the past two months.

As well as power plants, the money will finance drinking water and sanitation projects.

Most of Cameroon's electricity is generated by hydroelectric power stations, but droughts can leave the country facing electricity shortages.

Cameroon's Water and Energy Minister Jean Bernard Sindeu said the deal signed on Tuesday was "a welcome relief for the millions of people living in rural Cameroon who are in dire need of electricity, drinking water and sanitation facilities."

Angelique was due to start work on the projects in July, Sindeu said.

Details of the loan repayment schedule and interest rate have yet to be finalised.

"The agreement falls within the framework of the Indian government's grant scheme Focus Africa Programme which seeks to enhance economic and trade relations with Africa," said M.P. Gupta, director of Angelique, speaking on state radio.